Aid for AIDS in Africa

This article applies a two-tiered contribution model to ascertain the determinants of donors' participation and contribution levels to giving aid for controlling HIV/AIDS in Africa. Bayesian spatial estimates for the two-tiered model are presented for 22 donor countries that gave aid to 48 recipient countries during 2000-2007. We account for the public nature of HIV/AIDS contributions by including the contributions of other donors as a determinant at both participation and expenditure stages, along with standard determinants of general assistance. Independent variables account for altruistic, political, economic, location, institutional, and environmental factors. Donor's reaction to spillovers differs in the two stages, thereby supporting the two-tiered estimates over the single-stage Tobit estimates. Aid for AIDS in Africa is motivated by a complex mix of strategic (publicness), altruistic, and donor self-interests. Key factors at both stages include donors' spillovers, rule of law, past colonial ties, sharing a common language, trade, and people living with HIV. A host of robustness tests are presented.